Loans

Direct Subsidized Loan

This is a federally funded loan program that is available to any undergraduate student who has completed the FAFSA, demonstrated financial need, is a matriculated student enrolled for at least six credit hours in one term, is a United States citizen or eligible non-citizen, has maintained Satisfactory Academic progress, is not in default on a prior student loan and has demonstrated financial need; creditworthiness is not a requirement for the Direct Subsidized Loan. An undergraduate student may borrow between $3,500 and $5,500, depending upon class level and need. The interest rate is fixed at 4.45% for loans disbursed on or after July 1, 2017 and before July 1, 2018; the interest rate is fixed for the life of the loan. Interest does not accrue while the student is enrolled for at least six credit hours. Borrowers are charged, by the federal government, an up-front origination fee. For loans disbursed on or after October 1, 2016 and before October 1, 2017, the origination fee is 1.069% and for loans disbursed on or after October 1, 2017 and before October 1, 2018 the fee is 1.066%.

Direct Unsubsidized Loan

The Direct Unsubsidized Loan is a federally funded, low-interest-rate loan with eligibility requirements, terms, and conditions similar to those of the Direct Subsidized Loan. The primary difference is that interest accrues on the loan immediately after it is disbursed and while the student is enrolled. Students with no financial need are permitted to borrow through the Direct Unsubsidized loan program and may borrow between $3,500 and $5,500, depending upon class level. Additionally, all undergraduate students, regardless of financial need, are eligible for $2,000 in Unsubsidized Loan funds each academic year, up to a maximum of $8,000. Independent students (or dependent students, whose parents are unable to borrow a Federal Direct PLUS Loan, see below) may also borrow additional amounts under the Federal Direct Unsubsidized Loan program, as follows:

  • $4,000 per year for undergraduate students who have completed fewer than fifty-six credits
  • $5,000 per year for undergraduate students who have completed more than fifty-six credits

Direct Unsubsidized Loans cannot exceed the student’s budgeted cost of attendance in combination with other aid. The interest rate is fixed at 4.45% for loans disbursed on or after July 1, 2017 and before July 1, 2018; the interest rate is fixed for the life of the loan. Interest does not accrue while the student is enrolled for at least six credit hours. Borrowers are charged, by the federal government, an up-front origination fee. For loans disbursed on or after October 1, 2016 and before October 1, 2017, the origination fee is 1.069% and for loans disbursed on or after October 1, 2017 and before October 1, 2018 the fee is 1.066%. 

Students who have not previously borrowed a Direct Loan - either Subsidized or Unsubsidized - at Monmouth University must complete a promissory note; one promissory note will be used for both the Subsidized and Unsubsidized loan programs.  The Financial Aid Office will notify new borrowers when a promissory note is available electronically for signature; students may complete the promissory note online. Borrowers must complete the promissory note and an entrance counseling session before the loan funds will be credited electronically to the student’s account. The student will begin repayment of the loan six months after graduation or cessation of at least half-time enrollment. Direct Subsidized Loans are available during the regular academic year (i.e., fall and spring semesters) and may be available during the summer term, depending upon the student’s borrowing during the academic year; to access loan funds during the summer term, students must complete the University’s Summer Financial Aid Application and be registered for at least six credits during the course of the summer. In order to receive Direct Loan funding in subsequent academic years, the student must meet the established standards of Satisfactory Academic Progress for federal awards. Awards are applicable to costs associated with study abroad or study at the Washington Center.

Direct Parent Loan for Undergraduate Students (PLUS)

This is a federally funded loan program. Parents of eligible dependent undergraduate students (i.e., the student is enrolled as a matriculated student in at least six credits, is U.S. citizen or eligible non-citizen, has maintained Satisfactory Academic Progress, has completed the FAFSA, and is not in default on a prior student loan) may apply for this loan; the parent must also meet general eligibility criteria (i.e., the parent must be a U.S. citizen or eligible non-citizen and must not be in default on a prior student loan). The PLUS loan is not based on financial need, but borrowers must demonstrate creditworthiness. Eligible borrowers may borrow the difference between the cost of attending Monmouth and any other financial aid the student receives.

The interest rate is fixed at 7% for loans disbursed on or after July 1, 2017 and before July 1, 2018; the interest rate is fixed for the life of the loan. Interest does not accrue while the student is enrolled for at least six credit hours. Borrowers are charged, by the federal government, an up-front origination fee. For loans disbursed on or after October 1, 2016 and before October 1, 2017, the origination fee is 4.276% and for loans disbursed on or after October 1, 2017 and before October 1, 2018 the fee is 4.264%. Interest begins to accrue on the loan once it is disbursed and, unless the parent borrower requests an in-school deferment, the first payment is due sixty days after the loan is fully disbursed. Repayment lasts between ten and twenty-five years based on the total amount borrowed and the repayment option chosen by the borrower. 

The parent borrower must complete the application and promissory note online. Shortly after the beginning of each term, the University’s Financial Aid Office will arrange to have the funds electronically transferred to the student’s account.

Direct PLUS Loans are available during the regular academic year (i.e., fall and spring semesters) and the summer term; to access loan funds during the summer term, students must complete the University’s Summer Financial Aid Application and must be registered for at least six credits during the summer.  In order to receive Direct Loan funding in subsequent academic years, the student must meet the established standards of Satisfactory Academic Progress for federal awards. PLUS loans are applicable to costs associated with study abroad or study at the Washington Center.

Perkins Loan

The Perkins Loan program is funded by the federal government and is awarded to students who demonstrate extreme financial need and who meet the general eligibility criteria for federal financial aid. The loan does not accrue interest while the student is enrolled at least half-time (six credit hours) but does begin to accrue interest, at a rate of 5 percent, nine months after the student has graduated, withdrawn from the University, or dropped below six credit hours of enrollment. The loan carries a ten-year repayment term. Regulation allows students to borrow up to $5,500 annually, but the level of funding allotted to Monmouth University permits only an average award of approximately $600 annually. Funding is limited, and priority is given to students who have filed their financial aid application in a timely fashion. Prior to the beginning of the term, students will be notified when their Perkins Loan promissory note is available for them to complete electronically. Funds will not be credited to the student’s account until the promissory note and an entrance counseling session have been completed. Funding is available during the academic year only (i.e., fall and spring semesters) and are applicable to costs associated with study abroad or study at the Washington Center.  Renewal of the award in subsequent years is contingent upon timely filing of the FAFSA, availability of funding, and meeting the standards of Satisfactory Academic Progress required for federal awards. It is anticipated that the Perkins Loan Program will end in 2017.

Monmouth University Loan Fund

This loan program is funded by Monmouth University. Awards are made at the discretion of the Director of Financial Aid and are not renewable; the amount of the award is also at the discretion of the Director. Monmouth University Loan Funds may not be applied to costs associated with off-campus study (e.g., study abroad or study at the Washington Center). The terms and conditions of the loan are as follows:

  • Interest on the loan is fixed at 7 percent for the life of the loan and begins to accrue nine (9) months after the student ceases at least half-time (i.e., six credits) enrollment. When the student ceases half-time enrollment, he or she enters repayment. 
  • While in repayment, the student is expected to make quarterly payments of principle and interest of at least $120, although a minimum annual payment of 10% of the principle is required. 
  • The maximum repayment term is ten (10) years and there is no penalty for prepayment. 
  • In order to accept the offer of a Monmouth University Loan, students must complete a promissory note and disclosure documents as prepared by the Financial Aid Office.

Tudor Loan

This loan program is funded by a donor to Monmouth University. Awards are made at the discretion of the Director of Financial Aid to students who are in need and are made at a maximum of $1,000. Awards are not renewable. Tudor Loan funds may not be applied to costs associated with off-campus study (e.g., study abroad or study at the Washington Center). The terms and conditions of the loan are as follows:

  • Interest on the loan is fixed at 5 percent for the life of the loan and begins to accrue nine (9) months after the student ceases at least half-time (i.e., six credits) enrollment.  When the student ceases half-time enrollment, he or she enters repayment. 
  • While in repayment, the student is expected to make quarterly payments of principle and interest; a minimum annual payment of $200 of principle and interest is required. 
  • The maximum repayment term is ten (10) years and there is no penalty for prepayment. 
  • In order to accept the offer of a Tudor Loan, students must complete a promissory note and disclosure documents as prepared by the Financial Aid Office.

Alternative Loans

Alternative Loans are available to students through private lenders. These types of loans are an option for students who are either ineligible to borrow through the Direct Loan program or who have exhausted their eligibility for Direct Loan funding. Generally, students may apply for a loan of up to the cost of education, as determined by the Financial Aid Office, minus any other aid (including federal loans).

Alternative Loans are not regulated by the federal government, and the terms and conditions of the loans may vary widely among lenders. Since there are many options, students will want to compare lenders to find the Alternative Loan that best meets their needs. As a starting point, we have compiled a list of preferred lenders. The lenders appearing on the list have been chosen without prejudice and for the sole benefit of Monmouth University students. Interest rates and fees, borrower benefits, life of loan servicing, and meeting customer service standards have all been taken into consideration on our lender evaluation scorecard (available online for review). Students are free to choose ANY lender—whether it is on the list or not—without penalty. In the event that you choose a lender not appearing on the list, please notify the Financial Aid Office so we may assist in processing your loan.

Interested students are encouraged to contact the Financial Aid Office at 732-571-3463 or visit the alternative financing Web page for assistance in selecting the loan that best suits their needs.